Classification  12tm&*A 

HN-E^TOT 

Department  0 
fctv.  of  Bis^ricRi 

si  gmOl  D^e  .CONFIDENTIAL 


LETTER  AND  STATEMENT 

FROM  THE  SECRETARY  OF  STATE  IN  RELA- 
TION TO  THE  CONVENTION  BETWEKX 
THE   UNITED    STATES   AM)   Tllli 

REPUBLIC  OF  NICARAGUA  ^pp  c 

(EX.  B,  62d,  1st) 

CONCERNING  A  LOAN  WHICH  THE  REPUBLIC 
CONTEMPLATES  MAKING  WITH  CITI- 
ZENS OF  THE  UNITED  STATES 


9 


PRINTED  FOR  THE  USE  OF  THE  SENATE  COMMITTEE 
ON  FOREIGN  RELATIONS 


\Y  \sm.\GTON 

1:11 


I 


SRLF 
YRL 


THE  NICARAGUAN  LOAN. 

June   17,  1911. 
Hon.  Shelby  M.  Cullom, 

United  States  Senate. 

Dear  Senator  Cullom:  Incompliance  with  your  request,  I  lake 
pleasure  in  inclosing  a  copy  of  the  remarks  I  intended  to  make  when 
called  upon  by  your  committee  for  information  upon  the  Nicaragua 

convention. 

As  you  know,  the  President  is  intensely  interested  in  the  Nicaragua 

and  Honduras  conventions,  because  (1)  they  are  a  practical  measure 
of  peace:  (2)  they  are  of  vast  commercial  advantage,  especially  to 
the  Southern  States;  (3)  because,  so  far  from  involving  entangle- 
ments, they  will  greatly  reduce  actual  interference  in  Central  Ameri- 
can affairs;  (4)  because  they  make  American  diplomacy  and  American 
capital  helpful  to  neighboring  Republics  to  which  our  friendliness  is 
peculiarly  due;  (5)  because  they  lay  the  foundations  for  peace  in 
the  neighborhood  of  the  Panama  Canal,  where  constant  turbulence 
is  especially  intolerable.  I  will  not  tire  you  with  further  citations  of 
the  cogent  reasons  for  this  policy. 

We  feel  that  the  policy  is  so  clearly  right  that  it  needs  only  to  be 
understood  to  carry  conviction  to  an  impartial  mind.  Information 
is  what  is  most  needed,  and  I  therefore  request  that  you  will  be  good 
enough  to  have  printed  copies  of  all  the  materials  presented  to  your 
committee  regarding  the  Honduras  convention  furnished  to  all  the 
Senators,  and  will  do  the  same  at  the  earliest  practicable  moment 
with  all  the  materials  bearing  on  the  Nicaragua  convention,  so  that 
the  Senators  may  have  opportunity  to  know  the  facts  as  to  two  con- 
ventions which  are  of  equal  importance  and  identical  in  principle, 
and  therefore  lend  themselves  to  deliberation  as  one  general  subject. 

I  am,  my  dear  Senator,  always,  with  the  kindest  regards, 
Yours,  verv  sincerely, 

J   P.  C.  Knox. 


Nicaragua,  the  largest  of  all  the  Central  American  Republics,  like 
Honduras,  stretches  completely  across  the  isthmus  of  Central  America 
from  the  Caribbean  to  the  Pacific.  Its  area  is  50,000  square  miles, 
approximately,  being  thus  a  little  larger  than  either  Louisiana  or  New 
lork,and  a  little  smaller  than  Alabama  or  North  Carolina:  and  hasa 
population  of  somewhere  in  the  neighborhood  of  GOO. 000.  In  the 
interior  and  nearer  the  Pacific  side  are  the  two  large  lakes  of  Nicaragua 
and  Managua,  which  are  navigable,  and  thus  afford,  together  with  the 
San  Juan  River,  the  only  means  of  communication  from  the  capital  to 
the  Caribbean.  The  topography  of  the  country  is  very  advantageous 
for  the  development  of  its  natural  resources  and  of  commerce.     The 

100528—11  (3) 


4 

Atlantic  coast  ports  give  it  easy  access  to  New  Orleans  and  other  Gulf 
cities,  and  the  Pacific  ports  are  available  for  all  large  steamers  plying 
between  San  Francisco  and  Panama.  In  the  entire  country  there  are 
not  more  than  190  miles  of  railway,  and  this,  with  some  docks  at 
Corinto,  constitutes  approximately  all  the  Nicaraguan  public  improve- 
ments. The  railroad  runs  from  Corinto,  the  Pacific  port,  to  Managua, 
the  capital,  and  thence  to  Granada,  the  largest  city.  The  central 
portion  of  the  Republic  is  mountainous  and  suitable  for  the  coffee 
culture,  which  is  one  of  the  chief  industries.  The  eastern  slope  is 
composed  of  a  great  wilderness,  intersected  by  four  large  navigable 
rivers  emptying  into  the  Caribbean — the  San  Juan,  the  Bluefields,  the 
Rio  Grande,  and  the  Wanks  or  Coco,  which  latter  forms  the  boundary 
with  Honduras.  The  Bluefields  River  is  navigable  as  far  as  the  town 
of  Rama — that  is,  about  59  miles — for  large  seagoing  vessels,  the 
channel  being  narrowr,  but  with  a  depth  of  water  of  from  35  to  50  feet. 
The  same  would  be  true  of  the  Rio  Grande  if  the  bar  at  the  mouth 
thereof  were  removed,  and  navigation  in  that  ca.se  could  be  extended 
for  some  SO  miles  up  the  river.  The  banks  of  the  rivers  of  the  eastern 
slope  are  fertile  and  are  considered  by  some  experts  as  probably  the 
best  banana  lands  in  any  of  the  Republics  bordering  on  the  Caribbean 

Besides  bananas  and  other  tropical  fruits,  the  principal  product ' 
of  Nicaragua  are  coffee,  sugar,  cacao,  tobacco,  rubber,  cattle,  silvers 
and  gold.  The  coffee  is  of  fine  quality  and  the  area  capable  of  pro 
ducing  it  can  be  very  largely  increased.  The  mineral  resources" 
while  undoubtedly  valuable,  have  never  been  systematically  and> 
thoroughly  exploited,  although  the  districts  of  Prinzapolka  and 
Pispis  are  receiving  some  attention  from  American  investors.  An 
estimate  of  the  gold  exports  from  Nicaragua  for  1908  fixes  the  total 
as  being  somewhat  less  than  $1,000,000.  In  the  cooler  and  moun- 
tainous regions  there  are  vast  forests  of  fine  yellow  pine  and  mahog- 
any, and  other  tropical  woods  are  abundant  and  not  difficult  of  access. 
The  lands  cleared  of  the  timber  are  especially  useful  and  valuable 
for  agricultural  and  grazing  purposes. 

The  natural  advantages  of  this  region  and.  the  geographical  and 
strategic  importance  of  the  country  were  recognized  by  explorers 
and  surveyors  from  the  United  States  in  the  early  days  of  the  inter- 
oceanic  canal  discussion,  and  as  far  back  as  the  Jackson  and  Van 
Buren  administrations  commissions  sent  out  by  this  Government 
reported  favorably  on  Nicaragua  as  a  site  for  the  proposed  Isthmian 
Canal. 

The  eastern  portion  of  Nicaragua  is  at  present  without  means  of 
communication  with  the  wrest  except  by  the  rivers  and  lakes,  as  above 
mentioned,  and  even  in  the  dry  season  no  extensive  traffic  is  possible 
overland.  The  coffee  and  sugar  crops  must  therefore  go  out  through 
the  Pacific  ports,  which  are  quite  remote  from  the  United  States.  If 
a  railway  could  be  built  to  take  this  freight  to  tidewater  on  the  Atlan- 
tic side,  it  would  reach  its  natural  market  in  the  United  States  some 
two  weeks  sooner.  It  is  now  proposed  to  construct  a  railway  from 
the  port  of  Rama  overland,  going  via  La  Libert  ad  and  Boaco  to  a  place 
called  Sabana  Grande,  to  connect  with  the  road  running  to  the  Pacific. 
This  proposed  railway  Mould  have  a  branch  running  from  Boaco  to 
Matagalpa,  which  is  now  the  center  of  the  coffee  and  cattle  district. 
The  cost  of  building  this  road  is  one  of  the  objects  to  be  provided  for 
in  the  loan  which  Nicaragua  is  now  seeking  to  make. 


In  October,  1900,  a  revolution  broke  oul  in  the  eastern  section  of 
Nicaragua,  headed  by  Gen.  Juan  J.  Estrada.  On  the  1st  day  of 
December,  conditions  in  that  country  having  become  intolerable  and 
the  de  facto  control  of  the  eastern  and  western  sections,  representing 
each  about  one-half  of  the  total  area  of  the  Republic,  having  become 
vested  in  the  leaders  of  the  two  factions,  thi>  Government  found 
itself  under  the  necessity  of  so  declaring  and  suspended  diplomatic 
relations  with  Nicaragua,  the  charge*  d'affaires  being  given  Ids 
passports  on  that  day.  Gen.  Zelaya  escaped  from  the  country 
December  24,  1909,  on  board  a  Mexican  war  vessel. 

T  he  revolution  progressed  with  varying  success  until  in  the  month 
of  September,  1910,  the  capital  of  the  country  fell  into  the  hands  of 
Gen.  Estrada,  and  Dr.  dose  Madriz,  who  had  succeeded  Gen.  Zelaya, 
fled  the  country,  and  the  control  of  the  entire  Republic  fell  to  Gen. 
Estrada.  On  the  10th  day  of  September,  1910,  the  representative 
of  the  revolutionary  faction  at  Washington  called  at  the  Department 
of  State  and  exhibited  a  telegram  from  Gen.  Estrada  stating  thai 
among  other  objects  his  adminisi  rat  ion  would  endeavor  to  accom- 
plish the  refundment  of  the  national  debt,  to  effect  which  ii  intended 
to  ask  the  aid  of  the  American  Government  to  obtain  a  loan  in  the 
United  States.  On  September  14,  1910,  Estrada's  representative 
was  informed  that  this  Government  received  the  communication  of 
his  Government  with  great  satisfaction.  Subsequently  a  special 
commissioner  was  sent  to  Managua  at  the  request  of  the  Estrada 
government,  and  further  proposals  looking  to  the  enlistment  of  the 
aid  of  the  United  States  were  made.  On  October  27  an  agreement 
was  signed  by  the  four  leaders  at  Managua  representing  all  political 
factions  to  rehabilitate  the  public  finances,  to  pay  legitimate  claims, 
foreign  and  domestic,  and  to  solicit  for  this  purpose  the  good  offi< 
of  the  United  States  for  the  purpose  of  negotiating  a  loan  to  be  guar- 
anteed by  a  certain  percentage  of  the  customs  receipts  of  the  Repub- 
lic, collected  in  accordance  with  the  terms  of  an  agreement  satisfac- 
tory to  both  Governments.  In  accordance  with  these  overtures  from 
Nicaragua  to  the  United  States.  Ernest  II.  Wands,  an  American 
citizen,  was,  with  the  approval  of  the  department,  appointed  1>\  the 
Government  of  Gen.  Estrada  as  Nicaragua's  financial  adviser,  and 
he  has  since  then  visited  that  country  in  order  to  make  a  complete 
examination  of  its  monetary  needs  and  to  gather  the  data  necessary 
for  the  negotiation  of  the  proposed  loan.  An  important  part  of  said 
data  is  the  determination  of  the  probable  amount  of  claims  existing 
against  the  Government  of  Nicaragua  and  which  will  eventual^  be 
submitted  for  hearing  and  adjustment  to  a  claims  commission  con- 
sisting of  an  American  umpire,  nominated  by  the  United  States,  and 
two  commissioners,  one  an  American,  the  other  a  Nicaraguan,  both 
selected  by  the  Government  at  Managua,  the  foreign  representation 
on  the  said  commission  being  an  evidence  of  the  good  faith  of  Nicara- 
gua in  desiring  to  reach  an  equitable  settlement  of  these  outstanding 
claims. 

On  January  1.  1911,  Gen.  Estrada  was  elected  by  the  constituent 
assembly  President  of  Nicaragua  for  the  provisional  term  of  two  years, 
and  diplomatic  relations  were  on  that  day  resumed  with  Nicaragua. 
On  January  25  the  Nicaraguan  minister  at  Washington,  acting  under 
instructions  from  his  Government,  called  at  the  department  and  re- 
quested to  be  furnished  with  the  bases  of  a  convention  with  which 


6 

some  measure  of  security  might  be  given  to  the  loan.  From  that 
time  forward  the  negotiations  proceeded,  and  upon  the  change  of 
the  presidency  in  Nicaragua,  renewed  telegraphic  instructions  were 
sent  to  the  Nicaraguan  envoy  here  to  proceed  with  the  negotiations, 
which  terminated  on  June  6,  1910,  when  the  convention  was  signed 
which  is  now  before  the  committee,  and.  which  mutatis  mutandis  is 
practically  identical  with  that  concluded  with  Honduras  for  a  similar 
purpose,  which  was  reported  favorably  on  the  9th  instant. 

The  dishonesty  and  corruption  of  the  Zelaya  administration 
left  their  effect  upon  the  currency  system  of  the  country,  which  is 
indeed  in  a  lamentable  condition.  The  rate  of  exchange  of  the 
Nicaraguan  peso  to  the  American  dollar  has  fluctuated  in  the  past 
10  years  from  295  in  January,  1901,  to  1,400  in  August,  1910,  and 
averaged  in  1910  approximately  1,150;  that  is  to  say,  in  1901,  295 
Nicaraguan  pesos  were  equivalent  to  $100  American,  and  in  August, 
1910,  $100  American  would  buy  1.400  Nicaraguan  pesos.  Under 
these  circumstances  small  wonder  need  be  expressed  that  com- 
merce in  Nicaragua  has  been  stagnated,  as  merchants  refuse  to 
take  the  risk  of  being  obliged  to  pay  in  American  gold  to-day  for 
what  they  may  have  to  sell  at  a  loss  for  Nicaraguan  pesos  to-morrow. 

The  total  outstanding  foreign  bonded  indebtedness  of  Nicaragua 
is  represented  by  the  loan  of  1909  for  £1,250,000,  equivalent  in 
American  money  at  $4.86  to  $6,075,000.  Of  this  there  is  a  balance  on 
deposit  in  London  intended  under  the  original  loan  contract  for  use 
in  building  a  railway  from  the  Atlantic  to  Lake  Nicaragua  of 
£389,375,  equivalent  to  $1,892,362.50,  so  that  the  total  outstanding 
liabilities  of  Nicaragua  on  this  loan  are  represented  by  approximately 
$4,200,000.  Besides  this,  Nicaragua  owres  for  liquidated  external 
loans  and  claims  some  $750,000.  Approximately  $1,200,000  will  be 
necessary  to  liquidate  the  internal  indebtedness,  and  it  is  proposed  to 
provide  a  fund  of  about  $4,000,000  for  the  purpose  of  meeting  the 
claims  arising  out  of  the  recent  civil  war  and  the  award  of  the  com- 
mission established  for  the  purpose  of  settling  all  dascriptions  of 
unliquidated  claims  against  the  Government  of  Nicaragua.  The 
financial  expert  has  estimated  that  in  order  to  reform  the  currency  and 
to  put  it  upon  a  sound  and  stable  basis  so  as  to  prevent  fluctuation  an 
additional  sum  of  $1,500,000  will  be  necessary.  For  the  purpose  of 
constructing  the  railroad  it  is  proposed  to  provide  a  fund  by  means 
of  the  loan,  $500,000  of  which  might  be  spent  in  the  first  year,  and  it 
has  also  been  planned  to  provide  a  general  fund. of  $250,000  to  meet 
any  discrepancies  in  the  foregoing  items  or  for  exigencies  unforeseen. 
This  brings  the  total  of  Nicaragua's  immediate  needs  to  $12,400,000. 
To  meet  this  it  is  proposed  to  negotiate  a  loan,  according  as  mav  be 
found  necessary,  of  from  $12,000,000  to  $15,000,000,  with  American 
bankers,  secured  by  the  customs  revenues  of  Nicaragua.  The  con- 
vention recently  signed  by  this  Government  and  Nicaragua  for  this 
purpose  follows  the  general  plan  of  the  convention  with  Honduras, 
already  favorably  reported  by  your  committee  to  the  Senate. 

However,  it  is  to  be  observed  that  in  the  present  case  the  terms  and 
the  conditions  of  the  loan  have  not  as  yet  been  decided  upon,  but  only 
that  the  contract  when  drawn  in  a  form  satisfactory  to  Nicaragua  and 
to  the  lenders  shall  be  submitted  for  approval  to  the  Government  of 
the  United  States  before  final  execution.  It  is  proposed  to  have  the 
contract  thus  drawn  submitted  to  a  financial  and  legal  expert  so  as 


further  to  safeguard  the  interests  of  the  borrowers.     Mr.  Wands,  the 
financial  adviser  of  Nicaragua,  is  at   present   in  the  United  Stat 
sounding  various  bankers  merely  to  get  tentative  bids  upon  which  to 
base  a  contract,  leaving  flexible  the  price  of  the  bonds  and  the  terms 
in  order  that  he  may  solicit  proposals  and  determine  the  best  and 
most  advantageous  bid.     He  baa  already  bad  inquiries  from  bankers 
in  Ohio  and  Philadelphia,  as  well  as  from  many  New  York  firms, 
that  the  actual  negotiation  of  the  loan  i-  left  entirely  open.     The  rea- 
son for  the  somewhat  different  course  in  the  case  of  Honduras  v 
that  the  approximate  amount  of  the  outstanding  indebtedness,  includ- 
ing liability  for  claims,  had  already  beeu  ascertained,  and  the  Morgan 

firm  of  bankers  had  already  secured  an  option  on  about  three-fourth- 
of  the  bonds  held  by  the  council  of  foreign  bondholders  before  the 
department  had  entered  on  its  policy  of  assisting  the  Central  Ameri- 
can Kepublcs  to  rehabilitate  their  finances.  In  the  present  instance 
the  financial  adviser  of  Nicaragua  and  the  claims  commissioners  had 
not  as  yet  acquired  sufficient  data  on  which  to  base  an  estimate  of 
the  probable  amount  of  claims  and  indebtedness. 

The  convention  provides  that  the  loan  shall  be  placed  in  the 
United  States;  that  both  Governments  will  take  due  note  of  the  pro- 
visions of  the  contract  covering  the  loan:  that  it  shall  be  secured  by 
the  customs  of  Nicaragua;  that  Nicaragua  shall  not  alter  these 
customs  during;  the  life  of  the  loan  without  the  consent  of  the  United 
States  Government;  that  the  customs  shall  be  collected  and  admin- 
istered by  a  collector  general,  who  shall  be  appointed  by  the  Govern- 
ment of  Nicaragua  from  a  list  of  names  submitted  by  the  fiscal  agent 
of  the  loan  and  approved  by  the  President  of  the  United  States;  that 
Nicaragua  will  accord  to  this  collector  all  proper  protection  in  the 
discharge  of  his  duties,  and  should  circumstances  justify  the  I  nited 
States  Government  may  also  extend  him  protection.  It  will  thus  be 
seen  that  the  convention  is  framed  for  the  purpose  of  covering  no 
particular  contract,  and  its  provisions  will  only  be  applicable  and  the 
collector  general  only  appointed  when  a  contract  satisfactory  to  both 
Governments  has  been  negotiated. 

The  advantages  thus  to  be  obtained  by  the  Government  of  Nica- 
ragua can  scarcely  be  overestimated.  In  tin1  first  place,  the  interest 
on  her  foreign  debt,  now  exceeding  86.000.001).  will  be  reduced  from  6 
to  5  per  cent;  (2)  the  complete  discharge  of  old  long-standing  internal 
indebtedness  ami  the  prompt  discharge  of  its  obligation-  will  be 
attained;  (3)  cash  will  be  provided  which  will  be  honestly  expended  in 
the  building  of  adequate  railway  facilities  from  the  interior  to  the 
Caribbean;  (4)  the  fluctuation  of  exchange  will  be  no  Longer  possible; 
(5)  the  attainment  of  a  permanent  public  tranquillity  and  material 
progress  and  the  abolishment  of  unnecessary  expense  in  the  sup- 
pression of  revolutions. 

Nicaragua's  ability  to  meet  tin'  payment--  on  a  loan  of  $12,000,000, 
amounting  to  $60,000  per  month,  out  of  the  customs  receipt-,  which 
form  only  a  portion  of  the  general  income  of  the  Government,  would 
seem  at  once  apparent.  In  1910  the  customs  receipts  of  Nicaragua 
amounted  to  about  9,000,000  pesos,  or  approximately  $850,000, 
and  it  must  be  remembered  that  during  nearly  the  entire  tune  a 
revolution  was  in  progress.  The  last  revolution  in  Nicaragua  alone 
is  estimated  to  have  cost  in  the  neighborhood  of  $1,500,000.  It  has 
been  demonstrated  as  an  absolute  certainty  in  Santo  Domingo  that 


8 

tranquillity  will  be  established ;  that  the  enormous  war  expenses  now 
amounting  on  an  average  for  the  last  five  years  to  about  $450,000 
per  annum  will  be  greatly  reduced,  if  not  abolished;  that  under  an 
honest  and  competent  collection  and  administration  of  the  customs 
these  also  will  materially  increase,  and  that  the  commerce  of  the 
country  will  as  a  result  of  all  these  causes  be  greatly  augmented  and 
developed. 

The  maintenance  of  peace  in  Central  America  is  desirable,  not  only 
for  the  humanitarian  motive  of  preventing  useless  bloodshed  and 
for  the  political  reason  of  avoiding  danger  of  European  entanglement 
in  the  affairs  of  these  countries,  but  may  also  be  justified  from  a 
purely  material  standpoint  of  commerce.  The  total  foreign  trade 
of  the  States  of  Central  America,  including  Panama,  amounted  in 
1909  to  about  $60,000,000,  of  which  approximately  one-half  was 
with  the  United  States.  A  comparison  of  these  figures  with  Mexico's 
total  commerce  with  the  United  States  of  $117,000,000  will  give  some 
idea  of  the  trade  possibilities  with  the  Isthmian  Republics,  especially 
if  it  be  borne  in  mind  that  under  the  similar  arrangement  made  with 
the  Dominican  Republic  the  total  trade  with  the  United  States 
increased  from  $4,255,434  in  1903  (prior  to  the  modus  vivendi)  to 
$11,400,328  in  1910. 

A  statement,  which  is  submitted  herewith  as  an  appendix,  has  been 
prepared  in  the  department  showing  somewhat  in  detail  the  com- 
merce with  the  Central  American  countries  and  the  proportion  of 
such  commerce,  import  and  export,  taken  and  furnished,  respec- 
tively, by  the  United  States.  The  statement  further  contains  carefully 
compiled  data  showing  the  amount  of  import  and  export  Central 
American  trade  of  the  ports  of  Key  West,  Tampa,  and  Pensacola, 
Fla. ;  Mobile,  Ala.;  Pearl  River,  Miss.;  New  Orleans,  La.;  and  Gal- 
veston, Tex.,  all  of  which,  as  well  as  the  more  northern  ports,  may  be 
expected  to  benefit  by  any  expansion  of  the  Caribbean  commerce. 


APPENDIX. 

MEMORANDUM  RELATIVE  TO  THE  TRADE  OP  THE    I   NITED  STATES    Willi 
THE    STATES    OF    CENTRAL    AMERICA. 

The  following   table   shows    the   share  which   the   United   States 
enjoyed  in  1909  in  the  import,  export,  and  total  trade  of  each  Central 

American  State. 

IMPORTS. 


Countries. 

Total. 

From  United 
Rta 

$3. 300.  445 
2,  !"■ 

1.7m,s77 

472,  ^7.1 

4,996  527 

1,344;  310 

share  of 
United 

Costa  Rica 

$0,109,938 

5,251,317 

1 .  553 

2,218 

8,756.308 

4,176,931 

41 

49 
57 

Nicaragua ' 

Panama  - 

Salvador 

32 

EXPORTS. 


Countries. 

Total. 

To  United 

Percent  ace 
sham  of 
United 
States. 

Costa  Rica 

18,  i: 
10,079.219 

I  664,522 

1 .  51 1 
5,  651 

$4,80 
2,75 

577,616 
1,271.896 
l,83f 

59 

Guatemala 

27 

Honduras 

92 

Nicaragua  ' 

34 

Panama 2 

s) 

Salvador 

32 

TOTAL  TRADE. 


Countries. 


Costa  Rica. 
Guatemala 
Honduras. 
Nicaragua  ' 

Panama  '-'.  . 
Salvador. . 


Total. 


■--,.  [95 
I5,33i 
)  572,  155 

16,740 
10,21 


With  i 
States, 


1.^74.417 
3.604,443 
1,0! 

3,182.618 


Percentage 
share  oi 
United 


:.7 
31 
79 
40 

61 
32 


i  The  disturbed  condition  of  Nicaraguan  affairs  following  \pi  end  to  all  •alreeordse 

The  figures  given  are  the  firsl  four  months  of  thai  year  only.  It  is  thought,  however,  thai  t!  sywillserv. 
to  show  (he  share  of  Nicaraguan  trade  usually  enjoyed  by  the  I  nited  SI 

•'  Exclusive  of  Canal  Zo 

The  foregoing  statistics  have  been  taken  from  Central  American 
sources  in  order  that  comparable  figures  for  the  total  foreign  trade 
of  each  country  and  the  trade  of  each  with  the  I  nited  States  might 
be  obtained.  Throughout  the  remainder  of  this  memorandum  sta- 
tistics published  by  the  United  States  are  used.  It  should  be  noted 
that,   whereas   the   Central  American   statistics   nsed    above   do   not 


(9) 


10 

include  the  traffic  between  the  United  States  and  the  Panama  Canal 
Zone,  the  statistics  of  the  United  States  do.  This  is  a  matter  of 
about  .118,500,000  a  year.  Adding  this  and  allowing  for  a  different 
statistical  period,  an  approximate  figure  of  $42,500,000  is  secured  as 
representing  the  total  trade  between  the  United  States  and  all  Cen- 
tral America  in  the  place  of  the  $30,000,000  mentioned  above. 

Of  this  $42,500,000  of  total  trade  $13,000,000,  or  25  per  cent,  was 
handled  through  the  gulf  ports  of  the  United  States;  $20,000,000, 
or  47  per  cent,  through  the  port  of  New  York;  and  $5,000,000,  or  11 
per  cent,  through  the  port  of  San  Francisco.  The  following  table 
shows  the  amount  of  Central  American  traffic  which  passed  through 
each  gulf  port  during  the  fiscal  year  1909-10: 

KEY  WEST. 


Imports 
from — 

Exports 
to— 

Total. 

Honduras 

$16. 332 
13, 507 

$1,749 
424 

$18,081 

Nicaragua 

13,931 

Total 

29.839 

2,173 

32,012 

MOBILE. 


Costa  Rica. 
Guatemala. 
Honduras. . 
Nicaragua . 
Panama  — 


Total. 


3370, 295 

65, 602 

449. 730 

22,  525 

378. 506 


1.2S6.658 


$25. 526 

28, 537 

102,310 

6.000 

267, 751 


430, 124 


$395, 821 
94, 139 

552, 040 
28, 525 

646. 257 


1,716.782 


TAMPA. 


Honduras . 


1117,019 


$12, 588 


$129,607 


NEW  ORLEANS. 


Costa  Rica...                 

$1,587,856 

178, 975 

1,072,567 

437. 567 

607, 849 

$878,816 

391,859 

853, 410 

889, 085 

2, 692. 299 

$2, 466, 672 

Guatemala 

570, 834 

Honduras                        

1,925,977 

Nicaragua 

Panama 

1.326,652 
3, 300, 148 

Total 

3, 884, 814 

5, 705. 469 

9, 590,  283 

PEARL  RIVER,  MISS. 


Honduras 

$2, 549 
538,003 

$2,549 

Panama 

538,003 

Total 

540, 552 

540,552 



PENSACOLA. 


Honduras..                               

$4,432    $4,432 

Panama 

$122,752  |              122,752 

Total 

4,432              122,752  i              127,184 

TOTAL  GULF  PORTS. 


Grand  total. 


$5, 322, 762 


$6,813,658 


$12. 136. 420 


11 


There  was  no  commerce  between  Galveston,  Tex.,  and  Central 
America  until  the  beginning  of  this  year,  but  the  figures  for  four 

months  from  January  to  April,  1911,  inclusive,  show   imports  from 
Honduras  of  $111,515,  and  exports  of  $7,930. 

The  principal  articles  which  t  he  I  nited  States  imports  from  (Vni  ral 
America  are  bananas,  coffee,  crude  rubber,  hides  and  skin-,  and 
Cabinet  woods.  Bananas  are  the  most  important  item,  the  yearly 
importation  being  close  to  $6,000,000.  The  yearly  importation  of 
coffee  is  about  $3,000,000;  of  crude  rubber,  $1,000,000;  of  bides  and 
skins,  $600,000;  and  of  cabinet  woods,  $350,000.  The  following  table, 
prepared  from  statistics  of  the  United  States  for  the  fiscal  year 
1909-10.  shows  the  value  of  the  chief  article-  entering  into  the  trade 
with  each  country: 


Countries. 

Articles. 

Value. 

Imports  from — 
Costa  Rica 

Bananas 

13,031,566 

Coffee 

:««,282 

Hides  and  skins 

101 

Crude  rubber 

101,384 

Guatemala 

Coffee 

1.430,999 

Bananas 

192 

(  rude  rubber 

78,878 

Honduras 

Bananas 

1,524,843 

Coconuts 

120,451 

Crude  rubber 

117,808 

Nicaragua . . 

Crude  rubber 

418 

Hides  and  skins. .          

.'47,890 

Bananas                                

222,858 

Caliinet  wood .                                

188,258 

1  Hi,  304 

Panama 



918.331 

279.  155 

175,458 

Hides  and  skins. .                    

110,392 

Salvador 

(  oll'ee 

1,100,040 

37,720 
19,634 

13.909 

Exports  to— 
Costa  Rica 

Flour 

33ti.  134 

881,273 

Other  iron  nad  steel  manufactures. .           

545,036 

1.318 

161 

139 

<  '•  uatemala 

258,928 

123,039 

118,592 

'Other  iron  and  steel  manufacturer 

303 

Honduras 

359 

Flour                                          

152, 710 

89,049 

186,513 

295,  lid 

228,  ''11 

105,129 

other  iron  and  si  eel  manufactures                 

109. 260 

102 

Oils                                                                                          

103,946 

Panama 

1.7 

1,549,022 

3,625,927 

1,394,702 

1,38 

1,126, 132 

Salvador 

284 

200,683 
151,616 

173,493 

Bureau  of  Trade 


Relations, 

June  10, 1911. 


o 


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